Softwr

Accounting · head to head

Polar vs Lago

Polar logo

Polar

Accounting

Billing and revenue platform for AI and infrastructure companies

From
Free
Rated
-
Full reviewWebsite
Lago logo

Lago

Accounting

Open-source billing infrastructure for usage-based models

From
Free
Rated
-
Full reviewWebsite

The short version

  • Each has a real cost: Polar percentage-based fees higher than some specialized processors for high-volume transactions; Lago free tier limited to 10,000 entities per month with 5M event cap
  • They diverge on capability: Polar covers Usage Billing, Lago covers Real-time usage metering.

Where they differ

Only the attributes on which Polar and Lago actually diverge.

Attributes where Polar and Lago differ
AttributePolarLago
Pricing modelPercentage of transaction plus per-transaction feeFreemium with optional paid tiers
PlatformsWeb, APIWeb, Cloud, Self-hosted, On-premise, VPC

Identical on both: starting price (Free), free tier (Yes), user rating (Not yet rated), category (Accounting).

What each one covers

Drawn from each product's published feature list. An absence here means we hold no record of it - not that the product lacks it.

Only in Polar

  • Usage Billing
  • Subscriptions
  • Seat Management
  • Prepaid Credits
  • Hosted Checkout
  • Cost Insights
  • Merchant of Record

Only in Lago

  • Real-time usage metering
  • Multiple pricing models
  • Automated invoicing
  • Prepaid credits
  • Entitlements
  • Multi-currency support
  • Payment orchestration
  • Revenue analytics

What people use each for

The jobs each tool is most often brought in to do.

Polar

  • Billing for token and API call consumption by LLM applicationsnot Lago
  • Managing tiered pricing for infrastructure usage-based servicesnot Lago
  • Handling subscription and usage hybrid modelsnot Lago
  • Monetizing AI APIs with usage metering and creditsnot Lago

Lago

  • Building usage-based billing for high-volume APIs and infrastructurenot Polar
  • Implementing metered billing for AI and tokenized servicesnot Polar
  • Creating subscription and hybrid pricing modelsnot Polar
  • Managing multi-currency billing for global companiesnot Polar
  • Maintaining billing infrastructure without vendor lock-innot Polar

Where each one falls short

Documented limitations, not opinions. Every one is a constraint you would hit in normal use.

Polar

  • Percentage-based fees higher than some specialized processors for high-volume transactions
  • Merchant of record model may not suit companies preferring direct payment control
  • Free Starter tier limited with 5% fees reducing appeal for production use
  • Setup and integration effort required despite API simplicity

Lago

  • Free tier limited to 10,000 entities per month with 5M event cap
  • No specific pricing published for Pro annual plan or Scale plan
  • Self-hosted and on-premise deployments require engineering resources
  • Community support only on free tier
  • Scale plan requires annual contracts and sales engagement

Pricing, plan by plan

Polar

Free
  • StarterFree
    • 5% + $0.50 per transaction
    • Free tier for testing
    • Basic features
  • Pro$20/month
    • 3.8% + $0.40 per transaction
    • Full platform access
    • Cost insights
  • Growth$100/month
    • 3.6% + $0.35 per transaction
    • Priority support
    • Volume benefits
  • Scale$400/month
    • 3.4% + $0.30 per transaction
    • Dedicated support
    • Custom integration

Lago

Free
  • Build (Free)Free
    • 10,000 managed entities per month
    • 5M usage events per month
    • 1K events per second rate limit
  • Pro$399/month
    • 10,000 entities included (graduated pricing to 100K)
    • 25M usage events included (to 500M with graduated rates)
    • 10K events per second (upgradeable to 100K)
  • Scale$null/custom
    • Custom entity and event volumes
    • 50K events per second (upgradeable to 100K)
    • RBAC and SSO (SAML)

Which should you pick?

Choose Polar if

  • You need usage billing.
  • You want to start without paying.
  • You work on Web, API.
  • You also want subscriptions.
Polar review

Choose Lago if

  • You need real-time usage metering.
  • You want to start without paying.
  • You work on Web, Cloud, Self-hosted, On-premise, VPC.
  • You also want multiple pricing models.
Lago review

Questions people ask

Is Polar or Lago better?
Neither clearly leads. Polar starts at Free and Lago at Free, and user ratings are close enough to be indistinguishable. Choose on capability and platform support.
Which is cheaper, Polar or Lago?
Polar starts at Free and Lago at Free.
Does Polar or Lago run on more platforms?
Polar runs on Web, API. Lago runs on Web, Cloud, Self-hosted, On-premise, VPC.
Can I use Polar for free?
Both have a free tier, so you can try either at no cost before committing.
What is Polar best used for?
Polar is most often used for billing for token and api call consumption by llm applications, managing tiered pricing for infrastructure usage-based services, handling subscription and usage hybrid models, monetizing ai apis with usage metering and credits. Of those, billing for token and api call consumption by llm applications and managing tiered pricing for infrastructure usage-based services are not what Lago is typically brought in for.
What can Polar do that Lago cannot?
Polar covers Usage Billing, Subscriptions, Seat Management, Prepaid Credits. Lago covers Real-time usage metering, Multiple pricing models, Automated invoicing, Prepaid credits.

Answered from the vendors’ own pages

Polar: Do you handle international payments and taxes?

Yes, Polar acts as merchant of record in 100+ markets, handling payment processing, tax collection, and compliance automatically.

Source
Lago: Can I use Lago open-source for free?

Yes, Lago is open-source under the AGPLv3 license and can be self-hosted. The cloud-based Build plan is also free with limits of 10,000 entities and 5M events per month.

Source
Polar: Is there a free tier?

Yes, the Starter plan is free and charges 5% + $0.50 per transaction, ideal for testing and early-stage development.

Source
Lago: What payment providers does Lago integrate with?

Lago integrates with Stripe and Adyen for payment processing. It is not a payment processor itself but orchestrates payments through these providers.

Source
Polar: Do you offer discounts for startups?

Yes, the Startup Program provides the Scale plan free for 12 months for early-stage AI companies.

Source
Lago: Does Lago support multiple currencies?

Yes, Lago supports multi-currency billing with automatic currency conversion for global businesses.

Source
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